Lump sums of money that are won during a legal proceeding usually end up in structured settlements. The claimant chooses to withdraw the award in installments over time instead of one lone amount. This is beneficial to most people for a variety of reasons. Not accepting the award all at once saves on taxes that would be deducted immediately. There are also those individuals who cannot manage their money responsibly and require a longer term payout for future security reasons. Some victims often want to insure there is money left for beneficiaries after life. Often the company paying out a settlement will purchase annuities to insure future monetary payments. The payer benefits by not having to delve out a large amount of money all at once.
Emergency situations or the need for a large investment may find the structured settlement owner wanting to sell. The loss of a job, accident, illness or the need for a large purchase are just a few reasons people need their money in a lump sum right away. Others might involve owners who have an interest with investing their money into high end stocks. Once a lump sum is involved in a structured settlement, it is difficult to get the award released in one whole amount.
The easiest and fastest way is by selling the settlement to a responsible buyer who can complete the transaction in less than 14 days.
Buying the structured settlements involves doing homework and researching the annuities a seller may have secured. Although this is one of the safest investments one can make, an individual should be up to date with the legal proceedings surrounding the purchase. States have different laws for selling and purchasing structured settlements. Financial and legal counseling should be provided by involved professionals. When large sums of money are involved, a trustworthy broker is a must.
Purchasing structured settlements start with a quote to the seller and then negotiation of terms. Provide a purchase policy and insure everyone is in agreement with the issues surrounding the settlement. The buyer then completes an application that is sent to the courts for approval. All parties involved should benefit from the sell of a structured settlement. The purchaser of a settlement is responsible for the processing and payments of all transactions.
The seller is not liable for any outside costs that may be incurred. The buyer will lose money at first, but will eventually profit on their investment.
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